Three people were injured in the clash following which a battalion of Rapid Action Force had been deployed in the area to control the situation, police said.
As a preventive measure, shops and schools were shut down in the area to avoid any untoward incident and police appealed to the people not to react over any rumour.
The trouble began around 8 am when the car of Vikas Mishra hit Salman's motorcycle.
After a heated exchange of words, a fight broke out between Mishra and Salman, both residents of Khoda.
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Both groups resorted to stone-pelting, he added.
Out of the seven persons booked in this connection, three have been arrested.
Superintendent of Police (City) Shiv Shankar Yadav, however, claimed that there was no communal clash in area and a road mishap led to the incident.
Security personnel carried out a flag march and additional force was stationed in the area, sources said.